KETRACO’S PRESENTATION TO WEPEX PRESS CONFRERENCE

By MR. RAPHAEL MWORIA

On19TH OCTOBER 2015 – FAIRMONT NILE- CAIRO

KENYA ELECTRICITY TRANSMISSION CO. LTD.“Building a World Class National Grid”

1. Mandate

2. Electricity Structure in Kenya

3. Perspective

4. Electricity Demand

5. Generation Capacity

6. Generation Potential

7. Clean Energy

8. Regional Power Trade

9. Investment Opportunities2

OVERVIEW

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KETRACO’s mandate is to design, construct, operate and

maintain new high voltage electricity transmission

infrastructure that formS the backbone of the National

Transmission Grid. These lines include 132kV, 220kV, 400kV and

500kV HVDC.

The Kenya Power and Lighting Company (KPLC) has kept its

current stock of existing 132kV and 220kV transmission lines.

MANDATE

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Established in 2008

Invested US $2Billion in :-◦ 6 completed projects (746 kms)◦ 26 ongoing projects (3,422 kms)◦ 8 projects awaiting finances (1,324kms)

Asset Base – Kshs. 605,484,000 (US $6,054,840) in 2014

Project financing- Govt of Kenya, World Bank, AfDB, EIB, AFD, Govts of Spain, Belgium, EXIM Bank China, EXIM Bank India, JICA, etc

KETRACO STATUS

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Inadequate generation capacity due to insufficient investment

Dependence on 37.8% Hydro generation

Inadequate investment in transmission

Low access to power at 30%, less in rural areas

KENYA ELCTRICITY SECTORPESRPECTIVES- CHALLENGES (cont….)

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Vision 2030- Kenya’s economic development blueprint. Transform Kenya into a newly industrializing, “middle-income country by the year 2030”. Economic Pillar wishes to create a robust, diversified and competitive manufacturing sector. Other pillars Social & Political.

Devolution- 2010 new constitution. Anticipated rise in electricity demand due to oil, mining, production of iron and steel products, irrigation, agro-based industry, operation of petroleum pipelines for both crude and petro-chemical industries, airports, and new economic zones, railway,

5000+MW – 36 months. Capacity will mainly be developed from Geothermal 1,646 MW, Natural Gas 1,050 MW, Wind 630 MW and Coal 1,920 MW, through government power utilities and IPPs under the PPP framework. Aims at lowering cost of electricity.

Last Mile Programme- Aims at increasing electricity access to Kenyan non-commercial households. Three phases from Sep 2015. 314,000 households in phase I 600m from transformers. Phase II & III, to increase by 500,000 households through new transformers and extension of the low voltage network. 2.5 million Kenyans to be connected. Target is 70% by 2017 and universal access by 2020.

PERSPECTIVE (Cont…)

KENYA ELECTRICITY SUB-SECTOR STRUCTURE

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a. Installed capacity total 2,211 MW

b. The effective interconnected capacity during normal hydrology is 2,147 MW (hydro 821, geothermal 580, thermal 745, co-generation 26, and wind 26)

c. Registered interconnected national peak demand as of May 2015 is 1,520MW

d. The total connected electricity customers currently are approximately 2.3 million.

e. National electrification is approximately 30%.

KENYA’S ELECTRICITY DEMAND

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GENERATION CAPACITY

Small hydro Potential is 3,000MW Geothermal potential is between 5,000MW – 10,000MW.

Geothermal is currently the most promising indigenous resource for development of power.

GENERATION POTENTIAL

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1. GEOTHERMAL ENERGY

At least 7 projects are dedicated to the transmission of geothermal energy in Kenya. These projects will evacuate power from Olkaria, Menengai and Silali geothermal sites.

THE CLEAN ENERGY CORRIDOR

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Kenya has great potential for the use of solar energy throughout the year because of its strategic location near the equator with 4-6 kWh/m2/day levels of insolation.

The total Solar potential area capable of delivering 6.0 kW/m2 per day in the country is about 106,000 square kilometers whose potential is 638,790 TWh.

SOLAR

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On average the country has an area of close to 90,000 square kilometers with very excellent wind speeds of 6m/s and above.

The Best wind sites in Kenya are Marsabit , Samburu, parts of Laikipia, Meru north, Nyeri, Nyandarua, Ngong hills, Lamu, off shore Malindi, Loitokitok at the foot of Kilimanjaro and Narok plateau.

WIND

KEY GENERATION SITES & TRANSMISSION LINES

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Solar Potential Areas

Wind Potential Areas

Geothermal Potential Areas

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1. KENYA: Geothermal, hydro, wind, coal, natural gas2. TANZANIA: Hydro, natural gas4. UGANDA: Hydro, thermal5. RWANDA: Small hydro6. BURUNDI: Small hydro7. ETHIOPIA: Hydro, Wind8. SUDAN: Hydro, thermal9. EGYPT: Hydro, thermal, natural gas10. DRC: Hydro, thermal

Isolated power systems relying on internal power sources with power shortages – limited integration and power exchange

POWER POTENTIAL IN EASTERN, CENTRAL & NORTHERN AFRICA COUNTRIES

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Regional Power Institutions:

Nile Basin Initiative (NBI)

Nile Equatorial Lakes Subsidiary Action Program (NELSAP)

Eastern Africa Power Pool (EAPP)

East African Community Power Pool (EACPP)

REGIONAL POWER INTEGRATION

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Interconnection Projects Feasibility Studies Completed

(i) Kenya (Lessos) - Uganda (Jinja)(ii) Uganda (Mbarara) - Rwanda (Birembo)(iii) Burundi (Kigoma) – Rwanda (Rwegura)(iv) Bujumbura (Burundi) - Kiliba (DRC)(v) Burundi – Rwanda –DRC(vi) Burundi - Rwanda and Tanzania(vii) Ethiopia – Kenya(viii) Kenya -Tanzania(ix) Ethiopia-Sudan-Egypt

POWER INTERCONNECTION PROJECTS

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AFRICAN POWER POOLS

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Power GenerationIndependent Power Producers (IPPs) Public Private Partnership (PPP)

Power TransmissionInfrastructure developmentCapacity Building

Project managementOperation and maintenancePower management and trade

Power Distribution & Retail Equipment Manufacturing & Supply

INVESTMENT OPPORTUNITIES

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Power Generation & Transmission (Packages): developing power plant and transmission line together:

Independent Power Producers (IPPs) Public Private Partnership (PPP)

BOT BOOT

Equipment Manufacturing & Supply

Power Transmission Projects- EPC&F

Capacity Building

INVESTMENT & PARTNERSHIP OPPORTUNITIES

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PROJECTS WITH COMPLETED FEASIBILITY STUDIES BUT AWAITING FINANCING

  Project Name Scope (Engineering Procurement and Construction) Estimated Cost (US$) Kshs

1 Narok-Bomet 88km 132kV DC line and substation extension works ($17 million) 1.7

2 Kabarnet-Rumuruti 111km, 132kV DC line and substation extension works ($19 million) 1.9

3 Suswa - Ngong 40km, 220kV DC line with substation extension works ($21 million) 2.1

4 Meru -Maua Line 50km 132kV Line and 1 Sub-station at Maua ($14 million) 1.4

5 Rumuruti -Maralal Line 148km 132kV Line and Sub-station at Maralal ($21 million) 2.1

6 Rabai- Bamburi-Shanzu-Kilifi line

60km, 132kV DC line with associated substations ($27 million) 2.7

7 Voi - Taveta Line 107km, 132KV DC line, with substation at Taveta. ($26 million) 2.6

6 Garsen -Hola -Garissa Line 240km 220kV SC line and substation at Hola and Bura ($42 million) 4.2

7 Garissa –Habaswen -Wajir Line

330km 220kV SC Line and substation at Wajir and Habaswen

($73million) 7.3

8 Awendo -Isabenia Line 50km 132kV SC Line and substations at Isabenia ($14 million) 1.4

7 Galu - Lunga Lunga Line 60km 132kV SC Line and substations at Lunga Lunga ($16 million) 1.6

8 Ishiara - Chogoria Line 40km 132kV SC Line and substation at Chogoria ($13 million) 1.3

THANK YOU